Finding Text
Federal Award Findings and Questioned Costs:
Finding Number: 2024-001
Federal Assistance Listing Number: 97.036
Program: COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters)
Federal Agency Name: Federal Emergency Management Agency
Federal Award Number: D20-528
Federal Award Year: 2024
Criteria
Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards, (Subpart E, Section 200.303), the nonfederal
entity must establish and maintain effective internal controls over the Federal award that provides
reasonable assurance that the non Federal entity is managing the Federal award in compliance with
Federal statutes, regulations, and the terms and conditions of the Federal award. Further, Subpart E
Section 200.403 states that administrative closeout costs may be incurred until the due date of the final
reports. If incurred, these costs must be liquidated prior to the due date of the final reports and charged to
the final budget period of the award unless otherwise specified by the Federal agency. All other costs must
be incurred during the approved budget period.
Conditions Found
In one of 25 selections for testwork over period of performance, expenditures related to contract labor were
submitted for reimbursement to the Federal Emergency Management Agency (FEMA) that were outside of
the project period. Further, the review performed over expenditures was not completed appropriately to
identify this error, representing an instance of the District’s internal control not operating as designed.
Cause
The District does not have adequate controls in place to ensure that contract labor expenditures submitted
for reimbursement by FEMA under the COVID 19 Disaster Grants – Public Assistance (Presidentially
Declared Disasters) program represent service dates within the project period.
Effect
Without effective controls in place, expenditures could be reimbursed by the program that were incurred
outside of the project period, resulting in non compliance with program requirements.
Questioned Costs
$1,316, representing the known amount of expenditures incurred outside of the project period for the
COVID 19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) program.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
This finding is not a repeat finding in the immediate prior audit.
Recommendation
We recommend that management strengthen processes and controls in place to ensure contract labor
expenditures submitted to FEMA for reimbursement under the COVID 19 Disaster Grants – Public
Assistance (Presidentially Declared Disasters) program are appropriately reviewed prior to submission to
ensure they represent service dates within the project period.
Views of Responsible Officials
The District agrees with the finding and accepts the recommendation.